The Chile Economy, Social Crisis and Virus Impact

National Crisis, Emergencies, and Natural Disasters in Chile; including the experiences of Chile Forum Members have shared in current and in past crisis, as they have assisted each other and Chile. Things will always go wrong. It is how you deal with it that counts, and that starts with information. When things go wrong, this is the place to come to exchange information about what is going on in Chile.
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Re: The Chile Economy, Social Crisis and Virus Impact

Post by admin » Mon Apr 26, 2021 6:43 pm

Chile has A) massive undeveloped mining rights B) something like 80% of those rights are being sat on and not developed by just a handful of big mining companies.

In fact, a couple years ago to keep congress from passing a "use it, or loose it" mining reform, Pinera convinced some of the big mine companies to voluntarily allow small exploration companies to explore and develope some of those properties. It was really a bullshit political move to maintain the status quoe.

Chile is literally not even begining to scratch the surface of its potential.
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Re: The Chile Economy, Social Crisis and Virus Impact

Post by tiagoabner » Mon Apr 26, 2021 7:00 pm

admin wrote:
Mon Apr 26, 2021 6:43 pm
Chile has A) massive undeveloped mining rights B) something like 80% of those rights are being sat on and not developed by just a handful of big mining companies.

In fact, a couple years ago to keep congress from passing a "use it, or loose it" mining reform, Pinera convinced some of the big mine companies to voluntarily allow small exploration companies to explore and develope some of those properties. It was really a bullshit political move to maintain the status quoe.

Chile is literally not even begining to scratch the surface of its potential.
Yes, I read about that in the past. That's why it came to mind as a possible way to fund the projects that would've been needed to keep people at home
I'm NOT your lawyer, accountant or financial planner. All information at this post should be considered for your entertainment only. Consult a professional before making a decision regarding whatever topic was mentioned in this post.

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Re: The Chile Economy, Social Crisis and Virus Impact

Post by admin » Mon Apr 26, 2021 9:57 pm

you know, part of me thinks spooking and running off the big families might be good for the country. there are plenty of people that are rich, but "less rich" to keep things kind of centered; but also moving more towards a true international market economy.

right now it is a rats nest of traditional oligopolies and monopolies, special interest, that not even big international companies can easily enter the market or influence very much.

There is a good reason that most the major miners in chile are not listed on the chilean stock market.
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Re: The Chile Economy, Social Crisis and Virus Impact

Post by admin » Tue Apr 27, 2021 10:03 am

well, looks like unions are going to strike over the government's stupidity.

https://www.emol.com/noticias/Economia/ ... ierno.html
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Re: The Chile Economy, Social Crisis and Virus Impact

Post by admin » Tue Apr 27, 2021 2:57 pm

constitutional court rejected the pinera's petion to block a 3rd AFP withdrawl.

looks like we are getting another AFP withdrawl.
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Re: The Chile Economy, Social Crisis and Virus Impact

Post by tiagoabner » Tue Apr 27, 2021 3:41 pm

Article regarding that: https://www.t13.cl/noticia/politica/ter ... l-gobierno

There are some talks of asking the government to send the project back to congress to add the few items that were considered positive from the government's counter-proposal. Specifically, sending a $200.000 bono to the 3 million people who have no AFP savings due to them having gone through the withdraw process previously, as well as sending the same bono to retired people.
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Re: The Chile Economy, Social Crisis and Virus Impact

Post by admin » Tue Apr 27, 2021 3:58 pm

Think they will do that in a separate bill, and there is already a 4th /5th (they are loosing count) withdrawl proposal.

I think at this point, a good part of the country would lynch congress and pinera if they delayed this any longer with more mickey mouse political bullshit.
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Re: The Chile Economy, Social Crisis and Virus Impact

Post by admin » Tue Apr 27, 2021 4:04 pm

With this withdrawl, the AFP system is dead. That ship sailed.

The vast majority of Chile's poor to middle class effectively will have no retirement savings now.

Somehow, they are going to have to fix that; just not today.

so, I want all my money out of the AFP system, before anymore sticky fingered politicians get ahold of it.

The irony is, I put the two last withdrawl in to my brokerage, and have tripled that money in under year. I made more money, in under a year, than the frigen AFP manged to make in over 15 years with that same money.

so, screw them. give me my money back.
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Re: The Chile Economy, Social Crisis and Virus Impact

Post by admin » Tue Apr 27, 2021 4:11 pm

no, the real irony is, I manged to make most of that money investing in copper and lithium stocks.

How the hell do the morons running the AFPs screw that up?

You would think, they would at least know how to do investments in the two of the biggest exports in their own country.
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Re: The Chile Economy, Social Crisis and Virus Impact

Post by tiagoabner » Tue Apr 27, 2021 4:51 pm

admin wrote:
Tue Apr 27, 2021 4:11 pm
no, the real irony is, I manged to make most of that money investing in copper and lithium stocks.

How the hell do the morons running the AFPs screw that up?

You would think, they would at least know how to do investments in the two of the biggest exports in their own country.
I have no idea what the morons invest in, I'll need to do some research on this because I'm actually quite curious. The IPSA Chilean stock market has an annualized return of just under 12.5%, or roughly 9% when accounting for inflation. Either way, none of that justifies the effective 10%-ish assets over management fee that they charge. Your AFP contributions are 10% of your income, their fee is roughly 1% of your income. 1% divided by 10% is 10%.

As a reference, the average financial advisor in the US charges 1.02% in assets under management fees for investments under $1,000,000, 2% for a very experienced advisor with proven results, and 3% for the top 10 asset management companies. 10% is extorsive, and that's even before we go into the merit of the assets under management model, which is proven to be worse than investing in diversified mutual funds. The whole AFP system reeks of incompetence, corruption, and nepotism.
I'm NOT your lawyer, accountant or financial planner. All information at this post should be considered for your entertainment only. Consult a professional before making a decision regarding whatever topic was mentioned in this post.

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Re: The Chile Economy, Social Crisis and Virus Impact

Post by vamoschile » Tue Apr 27, 2021 5:11 pm

admin wrote:
Tue Apr 27, 2021 3:58 pm
Think they will do that in a separate bill, and there is already a 4th /5th (they are loosing count) withdrawl proposal.

I think at this point, a good part of the country would lynch congress and pinera if they delayed this any longer with more mickey mouse political bullshit.
Just curious is the average Chilean that desperate for money that they are willing to throw away retirement and possibly burn the country down over a 10% payout? I assume most of the payout is 1,000,000 pesos. What's funny in my research(local family/friends) nobody has used the AFP payouts for necessities. Its all going to new cars, house repairs/additions, toys, etc. I just herd a comment from my neighbor that if they don't pay out the other 10 percent they will burn the city again. What is with this attitude can someone explain why a decent percent of Chileans would burn the city if they didn't get the AFP payout considering most of the money spent was not on necessities?

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Re: The Chile Economy, Social Crisis and Virus Impact

Post by admin » Tue Apr 27, 2021 5:58 pm

Piñata got poked, and just surrendered.

next week people will be able to withdraw another 10%.
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